Can I apply? Am I eligible? What are my state’s policies? There is often confusion about who is eligible for unemployment benefits. Many people ask themselves the countless questions, and struggle to find the answers. Regardless of which state you live in, there are four key questions you must answer as you go about filing for unemployment benefits:
- How did you become unemployed? In general you are only eligible to receive unemployment compensation if you were laid off through no fault of your own. Examples include layoffs related to a slow economy, a division or office being shut down, or an individual layoff for nearly any other reason. If you were fired (meaning that you were let go because you violated a company policy) or quit, you are generally not able to receive benefits. There are many exceptions, however. If you state that you were fired or quit, you will be asked to describe the circumstances. Your answers to these questions will play an important role in determining whether or not you will be able to collect unemployment benefits.
- Did you work for a long enough period of time during your Base Period? Each state has what they refer to as a base period, which refers to the period of time prior to your filing for unemployment benefits. In most states, the Base Period is the five previous calendar quarters. You are asked to show that you were employed for a minimum period of time during this time. You are not required to have worked for the same employer the whole time, nor are you required to have been employed during the entire period.
- Did you earn enough income during your Base Period? In addition to demonstrating that you worked for a certain amount of time during your Base Period, your state will require that you show that you earned a minimum amount of income during the base period. Like the previous requirement, this test helps determine your level of employment prior to your application.
- Are you actively looking for work? The final key requirement to determine your eligibility when filing for unemployment benefits is to show that you are seeking a new job. If you decide to go back to school, take an extended vacation, or work as an independent contractor, you will not be considered eligible. One other reminder: the requirement that you are actively looking for work is an “ongoing requirement,” meaning that you will need to continue to update your status in order to continue receiving benefits. In most states, this periodic update will take place every two weeks.
Nearly two out of every three Americans who are unemployed are not receiving unemployment benefits. While some are ineligible to receive benefits, many don’t want to go through the hassle of filing for unemployment benefits. More importantly, many people think they are unable to apply, and avoid filling out the application form. Even if you don’t think you are eligible for unemployment benefits, or are unclear on your state’s policies, go ahead and apply – you may be pleasantly surprised.
See our list of State Unemployment Websites to find out details about where to apply in your state.
More than 50% of Americans who are out of work do not receive unemployment benefits. For some, the reasons are understandable. They may have been ineligible to receive benefits, or their benefits may have expired. Many people, however, do not receive benefits simply because they do not apply. If you are about to lose your job, have recently been laid off, or if you have be out of work for months, take a look at the items below. Here are four reasons why you should apply for unemployment benefits as soon as possible:
- The money is important. Unemployment checks amount to a few hundred dollars per week, with the average north of $300 per person. Think about the funds as covering a certain portion of your expenses. If your unemployment benefits manage to cover your rent or mortgage – great. If the money also covers the cost of your food – terrific. While the amount you receive will be less than you were earning while working, be thankful for the money. It can help serve as a buffer for your personal finances, and help lessen the amount of spending on credit or from savings.
- Eligibility will expire. If you do not apply for benefits within a year of losing your job, you run the risk of no longer meeting the eligibility requirements in your state. This applies even if you meet all of the other criteria. (Note: We have written a separate article dealing specifically with eligibility: Filing For Unemployment Benefits – Four Key Questions.)
- Buy yourself some time. Unemployment statistics show that it takes nearly five months for people to find a new job. Without unemployment benefits, you may feel compelled to take the first job opportunity that comes along. By receiving unemployment compensation while you you are seeking work, you will have more flexibility to be patient and choose the job that is right for you.
- You deserve it. Do not let yourself feel bad about applying for unemployment benefits. The unemployment insurance system is funded through employer payroll taxes. While you were working, your employer was required to pay a percentage of your income to support the unemployment pool in your state. In essence, this is money that would have been paid to you.